Item Number: {{item.number}}
City Council / Board of Directors
Public Hearing(s)
Meeting of: May 6, 2025
Submitted By:
Alex Jauregui, City Planner
Subject:
Approval request for the United States Department of Housing and Urban Development (HUD) required draft Fiscal Year 2025-2026 Annual Action Plan, allocating Federal Community Development Block Grant (CDBG) and Home Investment Partnership Program (HOME) funds
Recommendation:
That the Honorable City Council:
(1) Open and conduct a public hearing to receive citizen, public and agency comments regarding the draft Fiscal Year 2025-2026 Annual Action Plan; (2) Close the public hearing; and
(3) Approve Resolution No. 25-008 - Adopting the 2025-2026 Annual Action Plan, as presented for submittal to HUD, which contains the funding recommendations made by the Community Planning and Development (CPD) Grant Subcommittee; and
(4) Authorize the City Manager to execute all necessary documents for submittal to HUD; and
(5) Approve the continued inclusion of operating restrictions for food distributors/ providers, as recommended by the CPD Grant Subcommittee, within applicable subrecipient contracts.
Fiscal Impact:
Taking action in accordance with the staff recommendation will allocate approximately $1.9 million in federal grant funding to the City of Victorville for Fiscal Year 2025–2026 (FY 2025-2026). This includes $1,373,412 in Community Development Block Grant (CDBG) funds and $509,649 in HOME Investment Partnerships Program (HOME) funds.
Additionally, $15,000 in unspent CDBG-CV3 funds from FY 2023–2024 will be reallocated to an eligible applicant, as outlined in the 2025–2026 Annual Action Plan. 4 0
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The CDBG allocation of $1,373,412 does not carry a matching requirement. While HOME funding typically requires a local match, the $509,649 allocation for FY 2025–2026 has been granted a match waiver by HUD due to the City’s designation as fiscally distressed, based on its poverty rate and per capita income.
Except for certain administrative costs not fully covered by the limited grant allowances— such as portions of City staff time and facility use—these funds will not require the use of City financial resources.
In summary, the City of Victorville’s FY 2025–2026 annual budget shall reflect additional revenue and expenditures as follows:
•$1,373,412 in CDBG funding (City Org. 2813025)
•$509,649 in HOME funding (City Org. 2823027)
•$15,000 in reallocated CDBG-CV3 funding from FY 2023–2024 (City Org. 2813025)
Strategic Plan Goal:
Approval of the draft Fiscal Year 2025-2026 Annual Action Plan will formally allocate available CDBG/HOME funds, as well as reallocate previously received CDBG funds, which will enable the City to further fulfill the following Goals outlined in the 2024-2026 Strategic Plan:
•Goal A (Financial Sustainability) – CDBG and HOME funds represent funding opportunities that require limited financial commitments while ensuring greater availability of general fund resources.
•Goal D (Reduce Homelessness) – Eligible activities such as public service and housing projects are aimed to directly benefit the homeless population as well as those at risk of homelessness, providing the City an opportunity to expand the outreach network and partnerships.
Executive Summary:
The purpose of this request is to obtain City Council approval of the 2025–2026 Annual Action Plan (Attachment A), which enables the City of Victorville to apply for and receive Federal Community Development Block Grant (CDBG) and HOME Investment Partnerships Program (HOME) funding. The Annual Action Plan serves as the City’s one- year allocation strategy to implement the goals and priorities established in the previously adopted 2022–2026 Consolidated Plan (ConPlan).
As the official mechanism required by the U.S. Department of Housing and Urban Development (HUD) to access CDBG and HOME funds, approval of the Annual Action Plan will authorize the allocation and reallocation of approximately $1.9 million in federal funds for FY 2025–2026. These funds will be directed toward eligible activities consistent with federal regulations and the City’s local priorities. 4 0
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In alignment with the priority needs and strategic goals outlined in the 2022–2026 ConPlan, the Annual Action Plan allocates funding to programs and projects that meet HUD’s national objectives—primarily benefiting low- and moderate-income persons, addressing slums and blight, and meeting other identified community development needs.
A brief summary of the Consolidated Plan and this Annual Action Plan is provided below. 2022-2026 Consolidated Plan
•A five-year planning document that was last approved on April 19, 2022, and is utilized to guide the City’s use of CDBG and HOME funds through June 30, 2027. •Based on extensive community engagement—including two in-person workshops held in Old Town Victorville, five separate stakeholder meetings, a combination of digital and written surveys, and two public hearings before the City Council—the ConPlan identified the City’s priority needs and established measurable goals. These efforts ensured that federal funding would be directed toward activities that provide meaningful benefits to Victorville residents, with a particular focus on serving low- and moderate-income households.
•The ConPlan is supported by additional studies such as a Housing Needs Assessment, a Housing Market Analysis, an Analysis of Impediment to Fair Housing Choice, and other strategies to ensure the ConPlan reflects local issues of importance in a manner suited to address the City’s priorities.
•To ensure accountability and transparency, the City reports annually on its progress toward meeting the goals established in the ConPlan through the preparation of the Consolidated Annual Performance and Evaluation Report (CAPER). This report evaluates how federal funds were used and confirms that expenditures align with the priorities and objectives set forth in the ConPlan.
2025-2026 Annual Action Plan
•Attachment B outlines the funding components associated with the FY 2025-2026 allocation of $1,883,061 in CDBG and HOME funds, along with the reallocation of $15,000 in CDBG-CV3 funds from FY 2023-2024.
•The 2025-2026 Annual Action Plan represents the fourth year of the five-year 2022- 2026 ConPlan cycle and governs the use of new federal funding for the period of July 1, 2025, through June 30, 2026.
•The Action Plan establishes a one-year expenditure plan for the use of HUD funds and enables the implementation of the priority housing and community development needs identified in the 2022-2026 ConPlan.
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•Funding recommendations are based on the evaluation of qualified proposals that align with the priority needs identified in the ConPlan, demonstrate feasibility in meeting federal requirements, and reflect the availability of funds. Final recommendations are made by the Community Planning and Development (CPD) Grant Subcommittee following a thorough review and analysis of all applications during a publicly noticed meeting.
Background:
CDBG/HOME & CDBG-CV Funding Administration
The City of Victorville is a recipient of federal funding from the U.S. Department of Housing and Urban Development (HUD), including Community Development Block Grant (CDBG) and HOME Investment Partnerships Program (HOME), both of which are administered by HUD’s Office of Community Planning and Development (CPD).
The Planning Department is responsible for the administration of the City’s CDBG and HOME grants. CDBG & HOME funded programs and projects must reflect the needs outlined in the City’s five-year Consolidated Plan (ConPlan). The ConPlan is carried out through Annual Action Plans, which provide a concise summary of the actions, activities and the specific federal and non-federal resources that will be used each year to address the priority needs and specific goals identified by the ConPlan. The current ConPlan was originally approved by the City Council on April 19, 2022, for fiscal years 2022-2026. The following two subsections of this report describe the process for this coming year’s Annual Action Plan for CDBG and HOME funds.
2025-2026 Annual Action Plan Process
On December 17, 2024, the City Council appointed Mayor Becerra and Councilmember Jones to serve on the Community Planning and Development (CPD) Grant Subcommittee. The purpose of the CPD Grant Subcommittee with regard to CDBG and HOME grant programs is to review all eligible grant applications and determine consistency with the needs and goals established in the City’s ConPlan.
On March 4, 2025, the City Council conducted a public hearing to obtain citizen, agency, and prospective applicant comments regarding the City’s needs and strategies for the 2025-2026 Annual Action Plan. Following the public hearing, the CPD Grant Subcommittee met on March 17, 2025, to review and recommend allocation of $1,373,412 of CDBG funds, $509,649 of HOME Investment Partnerships Program (HOME) funds, as well as $15,000 of reallocated funds (Attachment B). The draft 2025- 2026 Annual Action Plan (Attachment A) outlines the programs and projects recommended by the CPD Grant Subcommittee for CDBG funding allocations. While the City receives both CDBG and HOME funds, only the CDBG allocations are detailed in Victorville’s Annual Action Plan. HOME funds are discussed within the Entitlement City Tasks and Requirements (Attachment D), as they are administered through a consortium between the City of Victorville and the Town of Apple Valley. As the lead agency for the 4 0
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consortium, Apple Valley will include the full HOME allocation, including Victorville’s share, in its own Annual Action Plan.
The CPD Grant Subcommittee Recommendations (Attachment C) provide a comprehensive summary of the final funding decisions for each eligible CDBG and HOME application reviewed. A total of twenty-four (24) distinct projects and programs are recommended for funding for FY 2025-2026 allocation.
Pursuant to HUD requirements, copies of the draft Annual Action Plan were made available for a 30-day public review during the period of March 21, 2025, through April 21, 2025. Although no public comments were received during the public review period of the document, any public comments received during this public hearing will be attached and incorporated into the Annual Action Plan for submittal to HUD after approval by the City Council.
CDBG/HOME Funding Sources
In 1997, the City of Victorville became an Entitlement City with HUD. This status allows the City to receive CDBG funds directly from HUD. Prior to Victorville’s status as an Entitlement City, CDBG funding was awarded to the City of Victorville through the County of San Bernardino and was subject to projects/programs that fulfilled a countywide need rather than those specific to the City.
The City of Victorville successfully formed a consortium in 2003 with the Town of Apple Valley in order to meet the threshold of obtaining HOME entitlement status with HUD.
The successful formation of the consortium results in an annual allocation of HOME funds to both communities, which can be used in concert with CDBG funding to address specific needs within the City of Victorville.
Discussion:
2025-2026 Annual Action Plan
Approval of the 2025-2026 Annual Action Plan will establish a one-year expenditure plan for the use of HUD funds and enable the implementation of the priority housing and community development needs identified in the 2022-2026 ConPlan. Included in the Annual Action Plan are the programs and projects proposed for FY 2025-2026 funding, which have been reviewed and recommended for approval by the CPD Grant Subcommittee. Projects not recommended for CDBG funding for FY 2025-2026 either retained sufficient unspent funds from prior-year allocations, were eligible to receive support through other proposed subrecipients (e.g. regional food banks) or were determined to be ineligible or inconsistent with funding priorities.
HUD annual allocations to the City of Victorville for FY 2025-2026 include $1,373,412 in CDBG funds and $509,649 in HOME funds. These allocations are approximate at this time pending the release of the Federal budget. Historically, CDBG allocations have fluctuated by approximately 1% to 3%, while HOME allocations have varied by 4 0
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approximately 2% to 4% from year to year. These two HUD programs will provide almost $1.9 million to the City of Victorville and can be used for services that assist low- to moderate-income persons. Also included in available funding is $15,000 in reallocated CDBG-CV3 funds from FY 2023-2024, made available because of a project cancellation by the original subrecipient. The subject 2025-2026 Annual Action Plan along with the Town of Apple Valley’s corresponding Annual Action Plan for HOME funds, includes proposed funding allocations for the following projects:
Organization / Project Name Allocation
CDBG Public Service Projects
Assistance League of Victor Valley / Operation School Bell $15,000 Child Advocates of San Bernardino County / Foster Youth Advocacy $10,000 Christ the Solid Rock LMEC / Lighthouse Learning Center $10,000 High Desert Second Chance / Food Collaborative $40,000
High Desert Second Chance / Senior & Veteran Program $10,000 Inland Fair Housing and Mediation Board / Fair Housing Services $24,000 Moses House Ministries / Family Resources & Referrals $20,000 Orenda Veterans Project / Orenda House $7,000
Partners Against Violence / Victim of Violence Program $10,000 Rock’n Our Disabilities Foundation / Arts & Recreation Program $10,000 Victor Valley Domestic Violence / A Better Way $20,000
City of Victorville / Motel Voucher Program $10,012
City of Victorville / Wellness Center Vehicle Repair Program $20,000 CDBG-CV Public Service Projects
Community Health Action Network / Emergency Assistance Program $15,000 Organization / Project Name Allocation
CDBG Construction / Other Projects
Rolling Start Inc. / Home Safe $20,000
Victor Valley Community Services Council / Senior Home Repair $20,000 Victorville Senior Citizens Club / Bathroom Renovation Phase II $100,000 Economic Development Department / Old Town Façade Improvement $300,000 Code Enforcement Department – Code Enforcement $250,000 Planning Department - Residential Rehabilitation Program $127,730 Public Works Department –LMAD 1 Beautification $74,988
CDBG Administration
Administration $274,682
HOME Housing Projects
Senior Home Repair Program $82,237
Victor Valley Domestic Violence – Safehouse Renovation $300,000 Community Housing Development Organization (CHDO) Project Project TBD - 15% minimum required allocation $76,447
Administration $25,482.50
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The total amounts of the subject CDBG and HOME categories are provided in the following tables. The tables also include the minimum/maximum requirements implemented by HUD. Staff finds that the proposed funding recommendations comply with the applicable HUD standards and requirements. Additionally, the HOME administration allocations are in accordance with a consortium agreement in place with the Town of Apple Valley who acts as the lead agency on HOME matters and retains a maximum of 50% of the City’s HOME administration allocation ($50,965 / 2 = $25,482.50) with appropriate documentation supporting such.
CDBG Allocations
Project Type Proposed Funding Comments
Public Service Projects $206,012 Maximum allowed by HUD-15% Construction/Other Projects $892,718 Minimum allowed by HUD-20% Administration $274,682 Maximum allowed by HUD-20%
TOTAL (2025-2026) $1,373,412
CDBG-CV Reallocation
Project Type Proposed Funding Comments
Public Service Projects $15,000 Reallocation to public service allowed by HUD
TOTAL (2025-2026) $15,000
HOME Allocations
Project Type Proposed Funding Comments
Housing Projects $382,237 Maximum allowed by HUD-N/A
CHDO Projects $76,447 Minimum allowed by HUD-15%
Administration –
Victorville’s portion $25,482.50
Administration – Apple
Valley’s portion of
Victorville’s share
$25,482.50
(Maximum
w/documentation)
Maximum allowed by HUD-10%
TOTAL (2025-2026) $509,649
Further discussion regarding the funding categories noted above is located in the attached “Entitlement City Tasks & Requirements” document (Attachment D), which includes specific information on the funding considerations and methodology used to compose the 2025-2026 Annual Action Plan in accordance with HUD guidelines and standards.
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Subrecipient Operating Restrictions
While HUD grant funds are typically allocated without specific operating restrictions, allocations in previous years have been awarded in some instances with contract language to ensure funds are spent to serve the City of Victorville residents or are provided in accordance with the City’s Zoning Ordinances. Therefore, the CPD Grant Subcommittee has recommended inclusion of the following contract language relating to food distribution activities being recommended for HUD funding, which was also included in their recommendation for Fiscal Years 2023-2024 & 2024-2025 CDBG/HOME funding. “The City of Victorville’s Homelessness Strategic Action Plan prioritizes the establishment of strategic partnerships with service providers to proactively house the unsheltered homeless population. With this in mind, it is imperative to establish rules of engagement for partnering food service providers that give direct or indirect aid to the unsheltered homeless in Victorville. This is necessary to achieve the desired outcome of housing the unsheltered and reducing associated environmental impacts.
Subrecipients of CDBG funds and their partnering feeding agencies shall ensure their employees and/or volunteers adhere to the following operating standards when providing direct assistance to unsheltered homeless:
•Service providers shall coordinate mobile food distribution with the Victorville Homeless Engagement Outreach Division of the Code Compliance Department to ensure additional resources are provided to the unsheltered individuals; •Service providers shall not distribute daily meals from a fixed location unless the food is served and consumed on the premises and all necessary land use, building permits and any applicable permits issued by the San Bernardino County Department of Environment Health have been obtained; and
•Service providers shall monitor areas where food has been distributed to collect and dispose of debris associated with the food distribution (e.g. bags, cartons, utensils, food waste).
Subrecipients that distribute food to feeding agencies that serve the Victorville unsheltered homeless population are required to list those agencies in their required CDBG reporting and reimbursement requests. Prior to distributing food to these feeding agencies, subrecipients shall obtain a signed acknowledgment from the feeding agencies to abide by the food distribution requirements listed above. Said acknowledgment(s) shall be provided to the City of Victorville with the CDBG reporting or reimbursement request.” Based on the information provided in this report, staff recommends that that Honorable City Council proceed with approving the 2025-2026 Annual Action Plan in accordance with staff’s recommendations listed on Page 1 of this report. Staff will be available to answer questions during the public hearing.
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Attachments: A. Resolution No. 25-008 (2025-2026 Annual Action Plan) B. 2025-2026 CDBG/HOME Anticipated Funding
C. 2025-2026 CPD Grant Subcommittee Recommendations
D. Entitlement City Tasks and Funding Requirements
E. CDBG Target Area Maps